OHCat

@PhantomBlack699 Do you have a full clip of the whole interview you can post?

Ryan Cohen comments on Michael Burry 👀

@PhantomBlack699 Teddy or Ebaby, either works for me!

RYAN COHEN SAYS HE WANTS EBAY TO BE HIS BABY, HE WANTS TO OWN IT.

@foxenflask Appreciate the DD and work. One of few that I follow in this game

@foxenflask Got it. I’m stupid and learning. 👍

By popular request, a look at post-acquisition valuation for the combined entity that would be $GME x $EBAY, a valuation that is likely being used by anyone banking/shopping this deal for equity or debt. Ryan’s eBay turnaround math gets you to $7.79 in Year‑One pro forma EPS. Layer in a separate 800M FY26 earnings run‑rate at GameStop (~$1.8 EPS on ~448M diluted shares) and you’re looking at ~$9.6 in combined, post‑acquisition Year‑One pro forma EPS. Slap a 15-20x multiple on that and the implied combined valuation lands in roughly a $144-192 per share range (purely on earnings power, ignoring balance sheet and optionality). It's that simple.

@foxenflask Thanks, we need a catalyst or waterfall to surge GME price. Might be naive of me, but I think he’s about to drop something big. It’s possible he thinks GME could cover 28B with 180 million shares left without increasing TSO vote

@CanonCsa this is the 1 year pro forma for both current entities in question, combined. cash + stock means more than just one thing...we will see soon. the negotiating hasn't even begun.

@Comedyorwat CNBC right now has Vlad on while discussing GME EBAY acquisition. Unbelieveable

I'll bet wall street bets won't post this CV payne interview

@idealideas My thoughts are on the 50% common shares. After RC comp package GME only has 180 shares left to reach 28B. Thats over $150+ a share. No way he’s banking a shareholder vote to increase share count. I think he knows something is about to make GME soar

What if a SPAC was formed and raised $12B, Ryan gave 4 B of GME cash…. I remember a certain private equity raise that Sixth Street Speciality lending did 😉

@rnewton7777 GME can’t issue more than the capped 180 million common shares left without going to a vote. No chance he’s putting this in voters hands. He must be confident he can get to $150+ per share on 180 million shares to reach 28B. Waterfall coming?

@MindandEmotion7 There’s only 180 million common shares left without going to vote. There’s no chance RC is banking on a vote to pass. So he must be confident he can get to 28 billion on 180 million shares. That’s over $150+ per share. Is he about to get the waterfall?

Why did Michael Burry sell his GME? I think there are only 2 possible reasons: 1) He now knows that Ryan Cohen plans on paying for the EBAY acquisition with BBBYQ money and he is conflicted out. 2) He knows the whole market is going to dip as Iran attacks the U.S. Navy escorting ships through the Strait of Hormuz tomorrow. If this is the case, I am sure he will buy back in after the dip. Even if GME only dips to $22, with a position his size, it wouldn't make sense to hold through. Either way we are good! LFG!🚀

@upland_baron @Hey_ross Sorry, it would be much higher. After the 170 million for RC’s comp package there is only about 180 million shares left. Thats over $150+ per share to reach 28 billion as the offer is laid out. there’s zero chance he’s banking this on a shareholder vote with fingers crossed

@CanonCsa @Hey_ross This is amazing news

Let's speculate at bit. Why is Almadeed posting about this deal? My guess is he is the backer of the TD financing, which would make no sense without a backer willing to take the risk off their books. Second question I haven't seen asked - what is the cash obligation of the call/put pair at the current and range of prices? How much of the $9b in cash on the books has to go towards exercising the options for even those to settle? There MUST be a source of cash coming into $GME that is already in their control but not realized (no material event yet until it happens) or external financing, which is unlikely.

@MDinTheRed @zebular0 Forgot about RC’s comp package which eats up 170+ million. So there’s only about 180 million shares to reach 28 billion. That means GME is over $150+ a share

@CanonCsa @zebular0 I think either GME will propose to dilute further or they have a third party lined up as a financier (but I’m stupid as fuck)

$GME $EBAY Guess what fundamental change happened since Friday... we learned we bought 5% of ebay and are up on our position.

@MDinTheRed @zebular0 They can only dilute up to approx 350 million shares that are left below the 1 billion share cap. That means GME would need to be $75-$80 a share to make it work. So he must be confident something is about to skyrocket GME.

@MDinTheRed @zebular0 That’s what I thought. He isn’t doing this fingers crossed with that on the table. He must know there’s a waterfall or something coming that will inject so much cash into GME the stock price will shoot up. Thats the ONLY way it works out using 50% common stock

@CanonCsa @zebular0 Dont Think so

@naiveanalyst7 Been saying this all day. But I’m more of the belief he would only plan this if there was something guaranteed to drive the GME price up. Is there a DKB waterfall coming now to inject so much money into GME it soars?

After carefully reading Ryan Cohen’s proposal letter to eBay’s board, one thing stands out. The offer is explicitly structured as 50% cash and 50% common GME stock. Not preferred stock, not convertibles, not warrants. Common stock. eBay has 449M shares outstanding. At $125 per share, the 50% stock consideration of the $55.5B bid is $27.75B. At GME’s current PPS of $24, that means approximately 1.15 billion new common shares to be issued. But GME’s charter only authorizes 1 billion common shares total, and between current outstanding shares (448M), convertible notes (144M), warrants (59M), and Cohen’s comp package (171M), roughly 822M are already committed. That leaves only 178M available under the current cap. Nowhere near enough. Before this deal can physically close, GME shareholders will need to vote to increase the authorized share count: a proxy will have to come first, and that vote will likely include a request to expand both common and preferred stock capacity, given that the charter currently authorizes only 5 million preferred shares, which at any reasonable price raises, nowhere near enough capital to meaningfully reduce the dilution burden. The third-party equity Cohen mentions, potentially Middle Eastern sovereign wealth funds per his WSJ interview, could theoretically reduce the number of common shares needed by injecting capital to increase the cash consideration. But even if they came in via preferred stock, GME’s charter only authorizes 5 million preferred shares, nowhere near enough to move the needle on a $55.5B deal. And the more I sit with these numbers, the more one thought keeps coming back: a Roaring Kitty appearance would be genuinely useful here: if he shows up, the stock could experience the kind of explosive upside it has in the past. A significantly higher PPS means fewer newly issued shares needed to cover the same $27.75B in stock consideration. It’s tinfoil. But the math makes it feel less crazy than it sounds. I might be missing something because I’m stupid, nothing I say is financial advice. I’m just learning out loud and having fun sharing my dumb opinions.

@PhantomBlack699 Sal, can GME issue more than the 1 billion share cap for this acquisition without a shareholder vote and approval? Because if not, RC must expect something to shift price up to hit around $55 to fund 28 billion on what’s available. Could we see DKB waterfall now

@rnewton7777 Is GME even allowed to issue more than the 1 billion share cap to acquire EBay without a shareholder vote to approve?

@TheUltimator5 Is GME even allowed to issue more than the 1 billion share cap to acquire EBay without a shareholder vote to approve?